Now is certainly not the time to be shy when it comes to retiring and buying your annuity. We probably have millions of pension investors who have been thrown into chaos by nearly two years of stockmarket volatility, and there has never been a better or more important time for anyone coming near to retirement age to review their retirement plans. Here are some top tips: You should seek specialist financial advice. This is the only way to ensure that you have all the information available to make a proper informed decision on your pension plans. A suitably-qualified adviser will be able to give you advice on recent legislative changes, such as the forthcoming change in the retirement age from 50 to 55, which comes into effect in April next year.
You should obtain a state pension forecast. This will help you to plan your retirement finances and look at whether you need to save more by topping up your national insurance contributions (NIC). Your financial adviser can help you regarding this or you can contact the Pension Service direct on 0845 6060 265 for a state pension entitlement quotation. Shop around for the best annuity rates. Most of your pension pot will be used to provide income for you in the form of an annuity. At retirement, you can transfer your pension pot to a new provider offering the best rates to suit your own circumstances.
You are not obliged to draw your pension income from your current pension provider, but by using what is called the Open Market Option (OMO), you are allowed to look for the best alternative rates on the market. And, enhanced annuity rates are also available for those people who have lower than average life expectancy, perhaps because they are regular smokers or suffer from some form of ill health. You should be prepared to take more control when it comes to addressing your retirement income requirement. Don’t think it is just about getting annuity quotes. You really owe it to yourself to do some digging around to find the best options and income available.
